Loading...
6.6. SR 12-15-1997TTEI~ 6.6. ~ay of MEMORANDUM TO: iver MAYOR AND CITY COUNCIL STEPHEN ROHLF AND LAURIE MEZERA-KERR DATE: DECEMBER 12, 1997 SUBJECT: SOLID WASTE CHANGES PROPOSED BY SHERBURNE COUNTY On Tuesday, December 16, 1997, the Sherbume County Board will consider several changes to the current solid waste system in the County. These changes could affect the City of Elk River in a variety of ways. This memo is designed to brief the Mayor and Council on these changes and seek your direction on the City's response to the proposed changes. CURRENT SITUATION Sherburne County is under contract to deliver 50 tons of refuse per day to the RDF plant. This contract runs through the year 2009. Because disposal fees at the RDF plant are significantly higher than at landfills, Sherburne County is concerned about meeting its contractual agreement. If the required tonnage is not met, the County will pay substantial penalties. Currently, the County assesses a refuse surcharge to all property owners (residential & businesses) in Eastern Sherburne County. This surcharge is used to subsidize the tipping fee at the RDF plant to make it competitive with landfilling. The two year surcharge, which has been in effect for one year, amounts to a $20 annual fee per household. The end result, is that this fee has enabled the County to meet its contractual agreement, but was viewed as a temporary solution and is proposed to be eliminated effective January 1, 1999. Presently, the City contracts with three different haulers to collect residential waste, but the City pays for disposal. The City of Elk River's residential garbage is under contract with the County to go to the RDF plant through 1998 at $41 per ton. Elk River's 3,900 households currently receive the benefit of the subsidized tipping fee at the RDF plant through lower monthly refuse bills. COUNTY PROPOSAL The County plans to: eliminate the current surcharge in 1999; and phase in higher tipping fees at the RDF plant that reach $56 per ton in 2002; and seek long-term (5 year) voluntary contracts with the haulers and the City to assure delivery of the waste to the RDF plant in an amount sufficient to meet the County's contractual obligation. 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 ° TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 The County Board is also considering imposition of an intra-state designation ordinance for the Eastern Sherburne County's refuse. The ordinance would mandate that all refuse in this end of the County, if disposed of in Minnesota, must go the Elk River RDF plant, unless the County approves another destination. The ordinance would not preclude waste from being transported out-of-state, which has been determined to be in conflict with constitutional Commerce Clause law. It now appears the County staff will be recommending to the Board that it table the proposed intra-state designation ordinance pending the outcome of its efforts to execute longer-term waste delivery contracts. Because the subsidy will be eliminated, and the tipping fees will increase, the County needs to assure that refuse from Eastern Sherburne County will not be hauled to cheaper landfills. Toward this end, the County has also bee negotiating a five-year contract with USA Waste, the new owner of the Elk River Landfill. In the draft contract, USA Waste, which also owns hauling operations, would deliver 30 tons a day to the RDF plant to partially meet the County's obligation. USA would pay the County's escalating tip fees for the waste it delivers to the RDF plant. Combined with the City of Elk River's and the Elk River Area School District's refuse, the proposed deal with USA Waste would bring Sherburne County close to its 50 ton per day obligation to the RDF plant. CITY'S CONCERN 1. Because disposal costs at the Elk River Landfill and other landfills will be significantly lower that the fees at the RDF plant, haulers in Eastern Sherbume County will be able to negotiate a disposal rate with USA Waste or other landfills that could be significantly lower than those established by the County for the RDF plant. City staff have expressed our concern to the County Board and County staff that the County's new approach will likely result in higher garbage rates for residents of Elk River than for other residents in Eastern Sherburne County, whose haulers will likely have negotiated lower rates. City staff has indicated to the County that the City would like to continue delivering its waste to the RDF plant, but that the City may not do so if it results in a significant price difference for the City residents. The County has indicated a willingness to address this issue with the City. Thus, staff is seeking direction from the Council to continue discussions with the County to develop a method to assure the City's waste to the RDF plant, but at rates that are consistent with those paid by other residents of Eastern Sherburne County. 2. Attached to this memo is a December 10, 1997 article from the Elk River Star News, which talks about the County's proposed intra-state ordinance. Staff is concerned that if the County enacts the ordinance, this could lead to a situation in which small haulers can no longer compete. In addition, the intra-state ordinance, in combination with the proposed deal with USA Waste, may ultimately end up costing the residents of Eastern Sherburne more than the current $20 refuse surcharge. If the ordinance is not enacted, haulers will have more freedom to choose their disposal options and a more competitive market will exist. Thus, staff seeks direction from the Council to oppose the enactment of the ordinance at this time. Elk River o Otsego · Ramsey ° Rogers · Zimmerman Elk RiVer, 'MN .... '""'" ' '"" ' 55330 · Vol. 122, NO, 48- 75¢ · Newsline 504-1528 · Internet address: http://www, ecm-inc.com · Dec. 10, 1997 Sherburne COunty may take ownership of garbage, tell haulers to go to RDF Plant by Don Heinzman sidy has been in the form of United Power Association allowed to truck trash to out. Editor Depending on what happens, Sherburne County could take ownership of the garbage in the county. If the county owned the auarbage it could tell the lers to take it to the refuse- derived fuel CRDF) processing center in Elk River. Sherburne has guaranteed it will provide 50 tens to the RDF plant each day. If that minimum is not met, the coun- ty could pay contract penal- ties. The county has for the last several years been subsidizing the tipping fees so they are at $41 a ton, hoping to keep local haulers going to the RDF plant in Elk River. That sub- $20 a year assessed to the property taxpayer. The subsi- dies amounted to $600,000 and the hope was it would be used to lower the fees of resi- dential owners. That has not happened, said county officials. The. Sherburne COunty Board has made it clear it will cut out that $20 subsidy, because some haulers' rates never went down and because people inthe county oppose it. Commissioners have directed Solid Waste. Officer David Lucas to negotiate long-term non-subsidized contracts with the county's garbage haulers to continue trucking trash to the Elk River plant. The garbage-is burned at the plant in Elk River to generate electricity. Commissioners also have told Lucas to start a county takeover ordinance under cur- rent public health statutes. Under that ordinance, the county would take control of the garbage in the county and bid trash collection to haulers on a contract basis. They would contract to take the trash to the RDF plant in Elk River. The county board will recon- sider intra-state designation at its Dec. 16 meeting. Haulers seeking better deals had been taking some of the trash to land£dls in Iowa. Recent federal court action said garbage haulers are of-state landfills. While that can still be done, the county unanimously has voted to consider reimple- meriting intrastate hauling rights. Under intrastate law, the county can dictate where garbage is taken within the state. If it implements intrastate hauling rights, haulers in the county would have a choice to either contract with Sherburne County or to haul the garbage to another state. The option of hauling to a com- petitive site within the state is removed Under intrastate des- ignation, Lucas said.